The owner of the Redbox movie-rental kiosks argues today’s consumers want an updated lineup of self-serve products, ranging from coffee to refurbished iPods.
Today’s shoppers are more technologically savvy, and want things quick on-the-go. The vending kiosk trend is expected to rise throughout the next decade. Research firm IHL Group estimates the North American market for automated kiosks will exceed $1.1 trillion in 2015, up from the $715 billion in 2010.
“People are much better at educating themselves about products, so they don’t need a store’s staff support as much as they used to,” said analyst John Kraft, who follows Coinstar for D.A. Davidson in Lake Oswego, Ore., to the Seattle Times. “And people are busier. They still have to go to the grocery store, but now, they can get more things done while there.”
Coinstar estimates that between 45,000 and 60,000 U.S. locations can accommodate Redbox machines.
Redbox joined with Verizon Communications in February to launch a new service that combines DVDs and streamed movies. Coinstar plans to start the new service in the second half of 2012.
The company’s expansion into new areas of automated retail has also eased investor concerns. Last year, Coinstar made a machine that sold designer purses, after talking about it with analysts.
The following are several new ideas Coinstar developed with about 80 analysts and investors:
Coffee Kiosk: Coinstar plans to grind, brew and dispense coffee and specialty drinks the under Seattle’s Best Coffee brand. Drinks will be sold for $1 or $1.50. About 500 of these kiosks are expected to launch by the end of 2012. More will be added to mass merchants, supermarkets and drugstores.
Gizmo: This kiosk would sell refurbished or overstock consumer electronics, including video-game consoles, tablet computers, iPods and cameras. Prices range from $169 to $220. Currently, there are 10 of these kiosks in Los Angeles and San Antonio.
ECOATM: Customers can sell their small portable electronic devices after identifying their make and model at the kiosk. There are about 50 of these machines on the West Coast.
Star Studios: Coinstar wants to modernize the old, photo-booth concept. Customers can pretend to be rock stars, fashion models or world travelers, decorate their photos and share them via email or Facebook afterward. The photo-booth costs between $6 to $12, depending on the size of photo prints. Nine booths operate in Los Angeles.